Earnings Beat: Logitech International S.A. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
Shareholders might have noticed that Logitech International S.A. (VTX:LOGN) filed its quarterly result this time last week. The early response was not positive, with shares down 2.6% to CHF82.14 in the past week. Revenues were US$1.2b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$1.63, an impressive 51% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following last week's earnings report, Logitech International's 15 analysts are forecasting 2027 revenues to be US$4.88b, approximately in line with the last 12 months. Statutory earnings per share are forecast to sink 13% to US$4.88 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$4.98b and earnings per share (EPS) of US$4.93 in 2027. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.
Check out our latest analysis for Logitech International
The consensus has reconfirmed its price target of CHF88.20, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Logitech International's market value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Logitech International at CHF119 per share, while the most bearish prices it at CHF67.94. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would also point out that the forecast 1.2% annualised revenue decline to the end of 2027 is better than the historical trend, which saw revenues shrink 4.2% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 12% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Logitech International to suffer worse than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Still, earnings per share are more important to value creation for shareholders. The consensus price target held steady at CHF88.20, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Logitech International going out to 2029, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Logitech International .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.